Nonprofit sponsors: reporting obligations.

Existing law, the Nonprofit Corporation Law, regulates the organization and operation of nonprofit public benefit corporations, nonprofit mutual benefit corporations, and nonprofit religious corporations, including, but not limited to, health care service plans. That law requires a nonprofit public benefit corporation to furnish annually to its members a report that includes the assets and liabilities of the corporation, revenue or receipts of the corporation, and the expenses or disbursements of the corporation. This bill would require a nonprofit sponsor to make specified annual disclosures publicly available by posting those disclosures on the nonprofit sponsor's public internet website in the same location where it posts copies of its annual report. The bill would require these disclosures to include information about the total amount of deferred compensation allocated by the nonprofit sponsor, the amount and type of compensation paid to or allocated on behalf of each listed person, as defined, receiving deferred compensation allocated by the nonprofit sponsor, whether taxes were paid on the deferred compensation, and the applicable agreement or legal document governing the deferred compensation. The bill would require this information to be reported in pay scales, as prescribed. The bill would define a "nonprofit sponsor" to mean a nonprofit corporation that operates or controls a health facility, operates or controls a facility that provides similar health care to a health facility, or is a licensed health care service plan pursuant to the Knox-Keene Health Care Service Plan Act of 1975. The bill would require the nonprofit sponsor to make the disclosures within 30 days of the nonprofit sponsor filing an Internal Revenue Service Form 990 for the nonprofit sponsor's taxable year. The bill would authorize the Attorney General to enforce these provisions against a nonprofit sponsor that fails to disclose the required documents in a complete, timely, or accurate manner. This bill would require a nonprofit sponsor to certify that the information it discloses is true and correct. By requiring the certification of information, this bill would expand the existing crime of perjury and impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.